Bitcoin Price Manipulation – The U.S Department of Justice just launched an investigation into whether traders are manipulating the price of Bitcoin and other digital tokens, Bloomberg reported this morning.
The investigation primarily focuses on illegal practices that can influence the price of these coins, such as “spoofing” – flooding the market with fake orders to trick other traders into buying or selling. Another illicit tactic the DOJ is looking into is called ‘wash trading,’ which traders trade with themselves to create the illusion of volume. This tactic is prevalent in equity and futures markets.
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